Ayala Corporation is set to adjust its organizational structure and executives to better adapt for future growth. AC Motors, Ayala’s subsidiary for all its mobility brands, will organize itself into two distinct businesses - automotive and motorcycle. This will allow the group to capitalize on the unique growth opportunities in each sector.
Under the new motorcycle division, Ayala’s KTM and Husqvarna brands will be able to work more independently of the automotive brands. This will allow them to act and adapt more decisively to the unique two-wheel market, in ways that may be very different from the conventional way of running an automotive business.
Dino Santos (leftmost) with AC Industrials and Pierer Mobility executives.
Previously, KTM Philippines distribution, retail, and even its manufacturing joint venture were operating under AC Industrials, the conglomerate's industrial technologies arm which also includes semiconductor manufacturing, display solutions, and solar energy solutions. Now it is under a dedicated motorcycle division of the mobility arm, AC Motors, within AC Industrials.
Heading the motorcycle division will be Dino Santos, President and COO of KTM Philippines. As motorcycle division head, he will now oversee the manufacturing, distribution and retail operations of the KTM and Huqvarna brands.
Impact on consumers
What does this mean for the average consumer? The move somewhat hints of Ayala Corp.'s ambition when it comes to the mobility sector. Creating a separate automotive division makes sense considering the number of car brands Ayala now controls. However, creating a motorcycle division just for two brands seems like an awful lot of work. Unless of course Ayala is planning to add more to that roster.
Ayala has pretty good relations with Pierer Mobility (KTM and Husqvarna's parent company). This could mean that both companies are considering the entry of even more brands. After all, Pierer also owns GasGas, and WP Suspension. There's also the possibility that Ayala is looking at motorcycle brands outside the Pierer Mobility Group.
Will more motorcycle brands come to the Philippines under Ayala? We certainly hope so. Let us know in the comments what moto brands Ayala should bring in.